Financing considerations for commercial solar into 2020 and beyond
The commercial solar business is flourishing. Various purchasers are coming together to complete projects, and more communities are developing solar projects. Yet, despite the economic benefits, commercial solar is financially challenging.
Some of the sticking points in getting deals done are:
- Minimizing challenges in tax equity financing – Tax equity investments can be cumbersome, partly because of the costs of unstandardized documents, small deal sizes, and credit rating issues.
- Navigating federal Investment Tax Credit (ITC) stepdowns – This will exert downward pressure on the commercial solar market, but that pressure may be offset by long-term positive trends.
- Maximizing solar-plus-storage – The market for energy storage is set for massive growth, but the combination introduces complexity in these deals.
It’s possible to manage these challenges and opportunities if you are well informed. For example, developers considering buying and holding equipment need to understand how their choices will affect the full ITC.
To learn more about financing considerations and tax implications for commercial solar, download our mini-brief, presented by CohnReznick and CohnReznick Capital, with insights from GTM.
2019 Trends in Utility Renewable Energy Financing